Update - Horse Hill, UK Weald Basin

RNS Number : 4707L

Stellar Resources PLC

28 April 2015

 

Stellar Resources plc

("Stellar Resources" or "the Company")

Update - Horse Hill, UK Weald Basin

Stellar Resources plc (AIM: STG) notes the comments in today's press in relation to the Horse Hill licences. The Company has been informed that the current two exploration licences over the Horse Hill licence area and their expiry dates are as follows:

the PEDL137 licence (within which the Horse Hill-1 well was drilled and which was the subject of the Company announcement of 9 April 2015) expires on 30 September 2015; and

PEDL246 licence expires on 30 June 2019.

Stellar Resources has also been informed that the operator of the two licences, Horse Hill Developments Limited* ("HHDL"), has already applied to the Oil & Gas Authority ("OGA") (formerly the Department of Energy and Climate Change) for a one year extension of the exploration period of PEDL137.

The Company will update the market on this licence extension in due course.

Further, the Company has been informed by the PEDL137 operator, HHDL, that it intends to conduct a flow test on Horse Hill-1 later in 2015 and that it has already submitted the applications to the authorities for their consent. Planning approval for a flow test on Horse Hill-1 is already in place, as this was included in the original Surrey County Council planning approval. Subject to the results of the flow test being successful, the operator would seek, in conjunction with the OGA and other regulators, to move the PEDL137 licence into the Production Period, via submission of a Field Development Plan to OGA.

Stellar Resources interest in Horse Hill:

The Horse Hill-1 well is located within onshore exploration license PEDL 137, on the northern side of the Weald Basin near Gatwick Airport.  Stellar Resources owns a 10% direct interest in Horse Hill Developments Ltd ("HHDL").  HHDL is a special purpose company that owns a 65% participating interest and operatorship of licence PEDL 137 and the adjacent licence PEDL 246 in the UK Weald Basin.  The participants in the Horse Hill-1 well are HHDL with a 65% working interest and Magellan Petroleum Corporation with a 35% interest.

Note *: The PEDL137 and PEDL246 licenses are held 35% by Magellan Petroleum Corporation and 65% by Horse Hill Developments Limited.

Enquiries:

Stellar Resources plc Donald Strang	[phone]
Cairn Financial Advisers LLP: James Caithie / Avi Robinson Public Relations: Square 1 Consulting Ltd David Bick/Mark Longson	[phone] [phone]

 

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